![]() If certain locations have a strong demand for cash transactions, an additional ATM can be installed to meet the demand. When installing ATMs, Geldmaat looks at the five-kilometer standard and demand, meaning everyone should be able to access an ATM within a five-kilometer radius. These machines are spread more evenly across the Netherlands, making withdrawing and depositing money accessible to all ( Geldmaat, 2021). As of 2019, bank ATMs were replaced by Geldmaat ATMs. Together they worked on creating a more efficient and bank-independent network of ATMs, known as Geldmaat in the Netherlands. In 2017 the three main banks decided to work together to maintain the level of service for customers still wanting to use cash. In part, the decline in ATMs is due to a unique collaboration between the large Dutch banks ABN AMRO, ING, and Rabobank. ![]() This trend is illustrated in Figure 5, showing a decline in the number of ATMs since 2014, with a very sharp drop as of 2017. This has also been triggered by a significant increase in ATM-bombings in the Netherlands, whereby ATMs are common targets of crime. Due to changes in social consumption and the move towards card payments, Dutch banks have devised strategies in closing ATMs and physical offices across the country. The role of cash has been influenced by the pandemic, but also by the role of banking institutions and regulators. Overall we can observe that the need for smaller change and cash payments has reduced. This growth is attributed to the fact that during the pandemic, consumers made fewer payments at physical locations, but often bought more ( DNB,2020). ![]() In 2020 the average card payment increased for the first time, with 4% to an average of €25.73 compared to €24.64. With card transactions, the trend was that often smaller amounts were being paid by card. The average value of a cash payment grew to €16.40 in 2020, slightly higher than €14.10 in 2019. These account for 33% of total smartwatch transactions within Europe since most Dutch banks have adopted Fitbit, Garmin, and ApplePay functionalities ( Statista, 2021b). Thereby, the Netherlands is also the leading European country for contactless payments through the use of smartwatches. The data analytics firm forecasts that the value of card payments is expected to reach €196,3 billion by 2024, up from around €120 billion in 2016 ( Global Data, 2021). The card payments market in the Netherlands was projected to grow by 7.7% by the end of 2021, according to Global Data. The Netherlands also increased the contactless payment limit during the pandemic, from €25 to €50. By the end of 2020, 85% of all debit card payments were contactless, compared to 69% in 2019. ![]() During the pandemic, the use of cash payments was strongly discouraged in stores, restaurants, and other public places, causing a surge in the use of digital payments. According to Statista, 91% of the Dutch use online banking apps and features (Statista, 2021). In part, Covid-19 has further accelerated an existing trend in the Netherlands. Today, cashless payments have once again increased in popularity. The strong decline continued in the following years, and in 2016 only 45% of payments were made in cash ( DNB, 2018). The overall perception of cashless payments was then switching to safer, cheaper, and faster. Additionally, the Single Euro Payments Area (SEPA) was introduced and enabled easier domestic and cross-border transactions. By 2007, cash accounted for 72% of POS payments. In 2005, the Payment Covenant was implemented which resulted in lower fees for merchants in completing debit card transactions. However, the years after marked the initial movement away from cash. In 2002 cash accounted for 85% of Point-of-Sale (POS) payments. Over the past decade, cash usage in the Netherlands has been steadily declining. Open-Innovation and Innovative Ecosystem.
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